Net loans in October 2019 decreased from the previous month by 87.7 billion Baht amid the pressure on loans at almost all banks, especially from debt repayment by the corporate sector, SME business operators and the government. Nonetheless, retail loans, namely, personal loan and other unsecured loans without collateral, continued to increase due to seasonal factors. Auto hire purchase loan and mortgage loan rose from the previous month, albeit at a slower pace. Consequently, outstanding net loans in October 2019 slowed to 11.702 trillion Baht, an increase of only 2.40 percent YoY – the lowest rate in over two years – and decelerating from 3.92 percent growth YoY in September 2019. The trend is a reflection of poor economic performance, which restrains the recovery of borrowers’ demands to withdraw funds from their loan facility. ... Read more

Digital-only banking is a banking business in the modern age that can be categorized into two types based on business models, which aim at different groups of customers: First, digital-only banks which focus on servicing low to medium income earners who face certain limitations in accessing financial services (Digital-Only A). Second, digital-only banks with customers overlapping with those of commercial banks, and the digital-only banks aim to become an alternative for customers to expedite transactions with lower transaction costs (Digital-Only B).... Read more

We at KResearch project that net profit overall of commercial banks registered in Thailand will reach approximately THB51-52 billion in 2Q19, declining from the THB52.59 billion reported for 1Q19. Operating profit in 2Q10 may recover at a slower pace because income growth from core business of commercial banks, including interest income, plus fees and service income, hinges on a clear economic recovery, which is expected to begin during 2H19.... Read more

We at KResearch are of the view that the Monetary Policy Committee (MPC) will likely keep its policy rate steady at 1.50 percent during the meeting scheduled for September 19, 2018. This is because it may not see the need to raise its policy rate much at this time despite steady improvements in the Thailand economy. Moreover, volatile capital movements and benign inflation may not prompt the MPC to change its stance at the upcoming meeting either. Inflationary pressure is limited especially from the demand side while there are no signs that inflation expectation will increase significantly in the future, so there is no need for the MPC to raise its policy rate in order to curb inflation now. In addition, Thailand’s external stability remains robust; therefore risk of capital flight is low as evidenced by net purchase of foreign investors in the Thai bond market. Given this, a policy hike may only attract more foreign capital into Thailand, thus strengthening the Baht’s value on a par with currencies of our trade rivals.
... Read more

Around 4-5 financial technology start-ups have begun providing Peer-to-Peer Lending (P2P Lending) in Thailand by focusing on retail borrowers, especially SME entrepreneurs. The online lending platform should provide these borrowers with an increased access to finance with a cheaper interest rate because the costs associated with certain lending procedures will be lower when the operation is run by a digital system. Additionally, some platforms are designed to add another layer of price competition mechanism for investors through the online auction process. At the same time, the conditions to request for loans via online platform have also been eased in terms of both collateral and duration of business operations (compared with application for unsecured loans at financial institutions).... Read more

Net loans for May increased to almost the same level as that in April by THB65.9 billion, or 0.59 percent MoM to THB11.20 trillion. When compared to the same period of 2017 and at the end of 2017, May net loans grew 4.99 percent YoY, or 1.27 percent YTD due to the low base of last year. The increase was seen almost across all banks in line with growth in business loans, in particular for large and small businesses. Retail loans were supported by auto hire purchase and home loans.... Read more

Net loans in February 2018 rose THB67 billion over January to USD11.05 trillion, thus rising 0.61 percent MoM and 4.36 percent YoY. Most increases were seen in large business loans, including working capital and term loans, while retail loan growth was mainly driven by auto financing on new and used cars as well as auto refinancing loans. SME loans had recovered gradually to marginal growth, while credit card loans slowed on loan repayments that continued to be brisk from the previous month. During the 2M18 period, loan growth had decelerated versus the end of 2017, but is expected to return to growth again by the end of 1Q18, buoyed by large corporate loan demand for use in their expansion of production capacities in line with the apparent international business recovery. Retail loans will likely perform better after subsiding somewhat on recent credit card paybacks and strong growth in auto loans. Meanwhile, competition in retail loan products presented via mobile banking apps by various banks will no doubt attract many customers soon enough, too.... Read more

In April 2018, net loans overall increased 0.61 percent MoM (THB67.8 billion), or 4.81 percent YoY to THB11.14 trillion, as expected. The increase was seen at almost all banks, led chiefly by business loans and retail loans (which include home, hire-purchase and unsecured personal loans). Meanwhile, deposits hit a four-month high of THB12.36 trillion, rising 0.99 percent MoM (THB121 billion), or 6.28 percent YoY. ... Read more

Net loans in October 2019 decreased from the previous month by 87.7 billion Baht amid the pressure on loans at almost all banks, especially from debt repayment by the corporate sector, SME business operators and the government. Nonetheless, retail loans, namely, personal loan and other unsecured loans without collateral, continued to increase due to seasonal factors. Auto hire purchase loan and mortgage loan rose from the previous month, albeit at a slower pace. Consequently, outstanding net loans in October 2019 slowed to 11.702 trillion Baht, an increase of only 2.40 percent YoY – the lowest rate in over two years – and decelerating from 3.92 percent growth YoY in September 2019. The trend is a reflection of poor economic performance, which restrains the recovery of borrowers’ demands to withdraw funds from their loan facility. ... Read more

Digital-only banking is a banking business in the modern age that can be categorized into two types based on business models, which aim at different groups of customers: First, digital-only banks which focus on servicing low to medium income earners who face certain limitations in accessing financial services (Digital-Only A). Second, digital-only banks with customers overlapping with those of commercial banks, and the digital-only banks aim to become an alternative for customers to expedite transactions with lower transaction costs (Digital-Only B).... Read more

We at KResearch project that net profit overall of commercial banks registered in Thailand will reach approximately THB51-52 billion in 2Q19, declining from the THB52.59 billion reported for 1Q19. Operating profit in 2Q10 may recover at a slower pace because income growth from core business of commercial banks, including interest income, plus fees and service income, hinges on a clear economic recovery, which is expected to begin during 2H19.... Read more

We at KResearch are of the view that the Monetary Policy Committee (MPC) will likely keep its policy rate steady at 1.50 percent during the meeting scheduled for September 19, 2018. This is because it may not see the need to raise its policy rate much at this time despite steady improvements in the Thailand economy. Moreover, volatile capital movements and benign inflation may not prompt the MPC to change its stance at the upcoming meeting either. Inflationary pressure is limited especially from the demand side while there are no signs that inflation expectation will increase significantly in the future, so there is no need for the MPC to raise its policy rate in order to curb inflation now. In addition, Thailand’s external stability remains robust; therefore risk of capital flight is low as evidenced by net purchase of foreign investors in the Thai bond market. Given this, a policy hike may only attract more foreign capital into Thailand, thus strengthening the Baht’s value on a par with currencies of our trade rivals.
... Read more

Around 4-5 financial technology start-ups have begun providing Peer-to-Peer Lending (P2P Lending) in Thailand by focusing on retail borrowers, especially SME entrepreneurs. The online lending platform should provide these borrowers with an increased access to finance with a cheaper interest rate because the costs associated with certain lending procedures will be lower when the operation is run by a digital system. Additionally, some platforms are designed to add another layer of price competition mechanism for investors through the online auction process. At the same time, the conditions to request for loans via online platform have also been eased in terms of both collateral and duration of business operations (compared with application for unsecured loans at financial institutions).... Read more

Net loans for May increased to almost the same level as that in April by THB65.9 billion, or 0.59 percent MoM to THB11.20 trillion. When compared to the same period of 2017 and at the end of 2017, May net loans grew 4.99 percent YoY, or 1.27 percent YTD due to the low base of last year. The increase was seen almost across all banks in line with growth in business loans, in particular for large and small businesses. Retail loans were supported by auto hire purchase and home loans.... Read more

Net loans in February 2018 rose THB67 billion over January to USD11.05 trillion, thus rising 0.61 percent MoM and 4.36 percent YoY. Most increases were seen in large business loans, including working capital and term loans, while retail loan growth was mainly driven by auto financing on new and used cars as well as auto refinancing loans. SME loans had recovered gradually to marginal growth, while credit card loans slowed on loan repayments that continued to be brisk from the previous month. During the 2M18 period, loan growth had decelerated versus the end of 2017, but is expected to return to growth again by the end of 1Q18, buoyed by large corporate loan demand for use in their expansion of production capacities in line with the apparent international business recovery. Retail loans will likely perform better after subsiding somewhat on recent credit card paybacks and strong growth in auto loans. Meanwhile, competition in retail loan products presented via mobile banking apps by various banks will no doubt attract many customers soon enough, too.... Read more

In April 2018, net loans overall increased 0.61 percent MoM (THB67.8 billion), or 4.81 percent YoY to THB11.14 trillion, as expected. The increase was seen at almost all banks, led chiefly by business loans and retail loans (which include home, hire-purchase and unsecured personal loans). Meanwhile, deposits hit a four-month high of THB12.36 trillion, rising 0.99 percent MoM (THB121 billion), or 6.28 percent YoY. ... Read more